income tax act 24b

Meaning of House Property:-

House property consists of any building or land appurtenant thereto of which the assessee is the  owner.  The  appurtenant  lands  may be  in  the  form  of  a  courtyard  or  compound  forming part of the building. But such land is to be distinguished from an open plot of land, which is not  charged  under  this  head  but  under  the  head 'Income  from  Other sources'  or 'BusinessIncome',  as  the  case  may  be.  Besides, 'houseproperty'   includes  flats,  shops,  office  space, factory sheds, agricultural land and farm houses. Further,  house  property  includes  all  type  of  house  properties,  i.e.,  residential  houses, godowns, cinema building, workshop building, hotel building, etc.

Essential conditions for taxing income under this head Income  from  house  property is  taxable in  the  hands  of its  legal  owner

in  whose  name  the property stands. „Owner‟ for this purpose means a person who can exercise the rights of the owner  not  on  behalf of the  owner  but in  his  own  right.  A  person  entitled to  receive  income from a property in his own right is to be treated

as its owner, even if no registered document is executed in his name. 

The  following  three  conditions  must  be  satisfied  before  the  income  of  the  property can  be taxed under the head“Income from House Property”:

·The property must consist of buildings and lands appurtenant thereto;

·The assessee must be the owner of such house property;

·The property may be used for any purpose, but it should not be used by the owner for the purpose of any business or profession carried on by him, the profit of which is chargeable to tax. If the property is used for own business or profession, it shall not be chargeable to tax. Ownership includes both free-hold and lease-hold rights and also includes deemed ownership.

Refer:: Income-from-House-Property-